Ladies and gentlemen, it is an honor and privilege to host Indian Railway Catering and Tourism Corporation Limited, IRCTC, for their Q4 FY 2021 results call. Representing the company, we have Shrmiti Rajini Hasija, Chairman and Managing Director and Shri Ajik Kumar, Director, Finance and CFO. We would request the Honorable Chairman and Managing Director to start the session with her opening remarks, post which we will open the floor for Q and A. Thank you and over to you, ma'am.
Thank you very much. A very good morning to everybody. I welcome you all to this call of IRCTC Limited for the quarter and the year ending ended on 31st March 2021. I hope that you and your dear ones are the stay in this challenging times of COVID, which has affected each and every quarter of our life. Yesterday, our company had announced the audited financial results for the Q4 and the year ended of fiscal 'twenty one, a same has been disclosed on both the stock exchanges too.
We all know that the COVID-nineteen pandemic has had a severe impact on the Indian Railways operations and all our business segments. In fact, it has been the worst year for the tourism and hospitality business. However, despite all the headwinds and challenges, IRCTC has shown remarkable improvements in its operation and financial operations. That will be evident from our results if we compare quarter 1 with quarter 2 and quarter 3 and quarter 4, there has been consistent improvement. I shall now hand over the call to our Director of Finance and CFO, Shriyadeep Kumar, who will provide you details of the quarter and year ended.
This is for the fiscal 2021 4th, which we shall have a question and answer session with you all. Thank you.
Good morning, everyone.
This is, of course, in the pandemic time, so whatever the best we have been able to achieve so that we have tried and this financial figure is here like this. The Q4 FY 'twenty one revenue was had INR339 crores and saw a sharp improvement of 51% quarter on quarter On a year on year, it continued to face the headwinds of the pandemic. EBITDA margin came at 42.8%, which was another high and saw an improvement of about 60 bps quarter on quarter. On a year on year basis, the EBITDA margin was much higher than 34.4% in Q4 FY 'twenty. Net profit before exceptional items was at INR2107 crores, which implies a growth of around 36% QoQ and a decline of 29% YOY.
For FY 'twenty one, revenue came at INR7.83 crores, which is a decline of 4 66% Y on Y and EBITDA margin came at 24.3% versus 31.4% Y o Y Our net profits before exceptional items came at INR150 crores versus of course INR527 crores year on year basis. Let me now move to the business segments of the company. The number one will be of course Starz Internet Ticketing. The Internet ticketing segment has been the most resilient business segment in this challenging time. The Q4 FY 'twenty one revenue Internet ticketing came at INR 212 crores, starting an increase of 48% Q on Q and decline of just 7% Y on Y.
The EBIT margin for the segment also saw staff improvement QoQ to 83.3%. In catering segments, as discussed in our previous earnings call, as you see early hit by the pandemic, While the revenue for the segment has been improving Q on Q basis, however, it continues to be lower on year on year basis. For Q4 FY 2021, it was INR 67 crores and then minus 75% year on year basis. As discussed earlier, this segment has seen restrictions like only ready to eat, only ready to eat and no cooked food are allowed on the on board or filled packed meals being allowed for meals to be ordered through e catering versus the earlier one that is the pre cooked meals being served in the pre pandemic era. However, the company has been able to reduce the losses both on absolute basis and EBIT margin level.
The next segment is tourism segment. Of course, it's worldwide this I mean, it's attractive there that this has seen the most severe hit of the pandemic for a childlike for the industry. The Q4 FY 'twenty one revenue though more than doubled Q1Q to INR 32 crore. It is still SEAT 1st year lower than Q4 FY 'twenty. This has, of course, had its impact on the profitability of the segment.
Now Rail Leads, the next segment has also seen QoQ improvements throughout the year. I mean, just after one moment, it started unlocking and so therefore this started the earnings started here. In Q4 FY 2021, its revenue improved by 64% QoQ to increase to 78,000,000. For Q4 FY21, the CapEx was 46 crores and for FY21, it has been 73 crores. The Company continues to have a strong balance sheet with a net cash of INR1460 crores and net worth of INR 1,466 crore.
Q1 FY22 has again seen the surge in COVID-nineteen infection and the same has been brought under control. We have also seen significant improvement in vaccination. However, the 3rd wave of infection and the impact of It still remains uncertain. At IRCTC, we will fight the tough situation as we have done in FY 'twenty one, and I'm confident that we could come out of even stronger. We can now move to the question and answer session.
Thank you.
Thank you very much. We will now begin the question and answer
session.
IRCTC.
IRCTC.
IRCTC. The first question is from the line of Ginni Sushi from Yes.
Thanks for the opportunity. Two questions. Sir, first, can you help us what is the convenience revenue and number of tickets booked in FY21?
The ticket booked in the year 2021 were around 1740 lakh tickets have been booked, It is almost 50% of the ticket that we had booked in the previous year.
And what is
the convenience revenue?
Convenience that we have realized in the year 2021 was around 2.99 crores.
Okay, madam. And secondly, if I look at our 4Q numbers with respect to the tourism division, Then what I see is that the EBIT loss is higher than the revenue. So is there any element of one off year? And secondly, if I understand this correctly, majority of our receivables pertains to catering. So while our catering revenues have gone down from INR 1,000 crores or to approximately INR 2.20 crores in FY 2021, the quantum of fall in receivables is not that high.
So how should we be reading into this?
I'll answer your second question first. You said your sales receivables have gone down and the rate is not in commensurate with the revenue. Actually, both cannot be compared Because the trade receivable which you were seeing since at the closure of the last year of fiscal was around INR77 crores. This was including all the pay receivables of the previous years also. So this year, for the first time, We have since there was no accumulation of the other areas, so IRCTC focused on decreasing the pay receivable and realized all the outstanding dues from the railways.
So the reduction level will be different, although it is very hard and we improved by 30% or so. And while the revenues of the catering have gone is almost 22% of You can say of the previous year, so it is not in the consideration with you because most cannot be compared. Most of our trade receivable from the railcars have been in the catering segment. Majority of them, 90% of them are from the catering segments. Yes.
But the total season of the pay receivable also includes every segment. Both cannot be compared. This is the outstanding of the previous year. The revenue generation is affected because of the COVID And the pattern of the business and the pattern of the travel. Because in the Q1, we didn't have any train.
And we show for the first time, we showed a lot. In the Q2, we had few trains introduced. 3rd quarter numbers were further improved. 4th quarter, initially the train number reduced, Then they were increased because April was very bad, April May. April May though were bad, but till March we could get more trends.
Okay, madam. And that tourism part, if you can answer.
I could not follow the
The EBIT loss is higher than the revenue reported.
Because of the prepaid traffic, which we used to have earlier. If you see the catering segment, our earlier sales from the prepaid segment used to be around INR 500, Which is not there now. And since you are asking about the tourism, In tourism, many segments like Maharaja, they see that they never moved. And this air ticketing also fall, Then various chain operations could not happen. All our railway tourism was put to an halt, almost halt.
It is only in the January we picked up a bit.
Okay, madam.
Thank you. The next question is from the line of Puro Mal Shyam from Haitong Securities. Please go ahead.
Good afternoon, madam, and thanks for the opportunity. Madam, the first question was on the non service charge revenue within internet ticketing. We've done a commendable job at a time when the volume decline has been maybe off. So just wanted you could throw some light as regards to the different sub segments of the non service charge revenue and outlook for FY 2022 and 2023.
In 2021, the total revenue from the internet segment has been around INR448 crores. Although this is 27% lesser as compared to the previous year because of the less number of trains being operated and the number of our passengers booked have reduced to half. The share of the convenience fee in this INR 4.48 crores has been to the tune of 36%, that is INR 299 crore. And rest of the segment is non service charge or non convenience fee, Like 37, 33 point something percentage from that segment. Out of which annual maintenance of different schemes And annual other API integration charges amounts to around INR 100 crores and other businesses like loyalty cards, etcetera So 66 was the contribution of convenience fee versus the other businesses In the Internet ticketing segment.
The promotional schemes and other schemes could not take off well because advertising Agency was seeing a very dense shape and not many advertisers were ready to go through the Google DSP tool also where the rates were made highly reasonable, very competitive. Rest of the revenue like annual maintenance etcetera, Some leverage was also given to our licensees, to our service providers and partners Because in the 2 months, they could not do any booking. So those channels were adjusted also. This has impacted the overall Contribution in that segment also.
Sure. Ma'am, specifically, if you could help with the income from our own payment gateway And on as regards to advertisement income for this year.
You mean to say iPay, right? Yeah, IPay. Yes, ma'am. So the IPay income has been contribution headwind Around 7%. Yes.
It is like I'll give you the right figure. Give me one minute.
Yes, ma'am.
It is around R15 this year we have received from IPI.
As compared last year,
we received around INR 28 crores.
Sure. And ma'am, the same number for advertisement for this year?
Advertising revenue has shown SMS. It has been very less. I think put together it is around INR9.78 crores advertising revenue. That is inclusive of all banners, SMS advertisement, government advertisement, non government advertisement put together all.
Sure, sure, Sure. Ma'am, I just wanted an understanding on the margin profile of Ipay. So there would be a combination of MG plus revenue share. So if we look at FY 2022 and 20 20 where there would be a normalization as regards to the volume on our network. What would be the kind of revenue share that will have to be done with the partner?
So actually the revenue sharing along with the partner Projection, we should understand the business in totality. 1st is that in the UPI, there is no share. UPI payments happening through Ipay does not have any share. And when debit card, few debit cards have And there's any payment below 2,000 also does not have share. So after that, the bhutamur is left, there is a sharing of around 4,060, 40,060, It includes the transaction charges from the customer and the commission from the banks.
Commission and sharing, We share with our partners, the entertained commission that we share, we share with the bank also. First bank thinks After deducting the bank amount, whatever is left, it is shared 5050 between 2
Sure. Sure. And ma'am, what could be the share of UPI transaction Because I believe this year the proportion of non AC volume would have been higher. So how is the share of UPI moved?
24%. 24.18%. The total ticket being booked through our website So UPI handle is 24%, debit card is around the 22%. So more than 40% is gone without transaction target share. So rest, we earn the revenue on the net banking credit card, auto pay, Bharatyue are also going to have some money like that.
Ma'am, I was asking the you compare in the number of tickets booked overall?
It is around 420.78 lakhs out of this 1700 ticket. 1700, it is 24% myself.
24%. Okay. Yes, sure. Ma'am, last question was, now that the catering was allowed during the Q4 re catering I'm referring to. And we had talked about we're looking at higher service with the aggregators.
If you could comment on how has the traction been on eCatering and how are the talks with the aggregators going on for onboarding it through our platform.
Are you specifically asking about e catering or you are asking in general about the catering or maybe?
Ma'am, I'm asking about e catering also.
Right. So in the case of our e catering, we have made certain changes in our policy in the aggregator model also. Fortunately, in the e catering, we are also we have done a few new tie ups and we have increased our commission from 12% to 15% marginally. So there is going to be some benefit and bookings are booking through e catering is going up. Very recently, We have opened booking of e catering food through our B2C partners also, Ixigo, MMT And Moby Quick and the 2 other I think 3, 4 other lead partners of B2C business have offered e catering for us.
So this has given us some increase and when initially we started, we were booking around 1,000 meals etcetera. Gradually from 1,000 meals now in the on the holiday, we have reached up to 12,000 or 11,000 meals also. Although the number of ticket being booked is almost 50% that we were booking earlier, So the we I can say that we are about to reach the pre COVID level very soon If this trend goes on because more and more B2C partners are going up. So we are finding some light in the Egypt trend.
Sure, ma'am. Many thanks for the explanation. I'll come back for follow-up. Thank you.
Thank you. The next question is from the line of Rahul Jain from Dollop Capital. Please go ahead.
Yes. Hi, Ma'am, firstly, if you could tell us in terms of what is the status of number of trains operational at the end of March And what is the status today? And similarly on the number of pool units that are operational at the end of March and as of today approximations?
See, I can you had asked about the number of trains and what was your second question?
Number of 4 units and Panchika.
Food Unit and Pendrika. So pre COVID, we had 417 Entry cars operation, now we have around more than I think 250 entry cars are operating. But this number is very dynamic because the trains being announced is a special train and it is of a very lesser frequency, 2 months, 3 months. The number of our trains are changing very fast also. So the number I may be telling you now may not be there tomorrow.
Yeah. I understand. And this 250 is as of June or this is you're saying of March?
This is as of as on date.
Okay. And this
is shifting I know that we have a righty available at once.
Okay. And overall trend, this is Number of train business.
Even if there is not a the entry card is not there, we still have a train side vending and we still have a train side vending contracts on these trains. So those trailers, no train is leaving the being left alone without a contract. Each train is a revenue for us.
Right. So the total number of trains which were operational in March versus now?
Yes, plus you can say it has increased by 20%. We are both yes, from the March. Because recently 800 trains, more trains were announced and gradually we are getting the train in a phased manner. Initially, we got 130 trains, then we got 140 trains. It is being increased every month, every rather every week.
Yes. So 800 is the recent mode status and this is 20% higher than March status? Yes. Okay. And in the catering business, wherever we are coming up for renewal, what are the like for like Revenue we are collecting.
Let's assume there is a renewal for Chennai station. So what was the License fee on an average they were paying 3 COVID versus what is the 1st today.
See, in many mid COVID has not ended fully. Footfall at the station has not gone up by the At pre COVID levels also. So the claims, only the reserve segment travel is permitted other than the suburban traffic. So many of the stations are not having adequate footfall. So food plaza and SFU units are being operated at a reduced license fee.
Incremental increase in the license fee That happens normally and will happen after I think 2, 3 months when the footfall is restored to normal and see. Because, first, when the units were closed by the SAES, the diasmon period starts. And after in the diasmon period, you have to hold handoff licensee so that he is able to fulfill the obligations, contextual obligations. Just to provide services to the customers, They were persuaded to open all the units at a reduced license fee. Now today, that period is ending today.
Today, we are going to decide how much licensee they will be working because the footfall in these adaptations has not reverted back to pre COVID levels yet. And the total number of our passengers, though, in the reserve segment is more. But unreserved because of attestation, tail through photo units is happening Through the another segment also. That is not there. So desired football is not there
for them.
So we have to work with them on a reduced license. The increment will happen once normalization is restored.
Right.
And On the tourism side, our losses even on a quarter to quarter basis, what I mean to say Q3 'twenty one versus what it is today. It has increased from INR 11 crores to INR42 crores. So is it because we started the Tejas operation And also the Golden Chariot, which was started during this quarter. Is it some one time expenses we have incurred towards Golden Chariot marketing or refurbishment For Tejas, which has resulted in INR 30 crores higher losses on a QoQ basis?
Oh, that is because of the provisioning made. See, during COVID period, the pages and Markel operations were canceled like other trends. But unfortunately, somehow, we have been asked to the provisioning was made For the fixed charges. Like some fixed charges are to be paid for the operation of these stages and Mahakal because we have taken these rates on lease from railways. There are cheap charges for that.
But since operation was not happening, we have represented to Ministry of Railways For waiver of these charges, this is under consideration because license period as is applicable for the So normal license is applicable for IRCTC as well. So we have represented we were given some relief Initially, but that relief was not in commensurate with the total amount charged. So we have represented again to Raven. So we have made provisioning for that. Maybe once we get the approval, this will be counted in the revenue in the next quarter.
Right. So Out of this 40 crore losses, what is this provisioning? And is it for the full year instead of 1 quarter?
48 crores is the provisioning, sir.
Okay. And this is for more than 3 months, which we have done in this quarter?
Actually, for the entire year.
Okay. So basically, in the earlier stage, we were not assuming this as a cost and that may have accounted
All the entries are caused, but when we started CAGR in the first 6 months in 'nineteen, 'twenty, we have already built in and we have paid to the regers also.
This cost.
And that was in our expenditure. But in unfortunately, in 2021, in the beginning of 'twenty one, they just had to be canceled.
Right. So
that is why you can see it very categorically that the days were not being operated and which is there in our footmarks also. That provision for INR 28 crores has been made this year. The document that we have submitted to stock exchange.
So basically this INR 28 crores amounts to the leasing charges for period of January till March.
Leasing charges and the fixed salary charge.
Okay. This is only amounting for 1 quarter only?
No, sir. It is for the entire year.
For non operating.
For non operating years, For which we were told to pay by Ministry of Railway.
Okay. This was the total quantum for the full year. Yes. Earlier the fixed lease charges and holiday charges were not expensed During this quarter and that's why all of them have accumulated to INR 20 crore which is charging this quarter? Yes.
And any Significant spend we have done on this Golden Chariot, during the quarter. In the
Chariot, Most of the marketing was done by local offices. It's only the digital marketing we did. No paper advertisement, nothing needed. We are not resorted to any press Relieves other than Bharadarshan where we had a very petty we have done a very petty expenditure. In fact, we had our total expenditure on the Marketing would not have crossed even once a year.
Right. So now
We spend mostly on digital media. We have spent on print to medium.
Right. Just to get the understanding. So in this quarter, when we report the April, May, June quarter, The losses in this period could more be online for what we saw in Q3 because this one time 28 crore thing will not be there. So it will be reduced by this amount It may be reduced
in the Q1 or Q2 Yes, yes. If we get approval from the moment we get approval from Ministry of Railways, for which we are working very hard, we have also presented I would
say very in a very
coordinated manner and we appear to be very much convinced.
Thank you. The next question is from the line of Urumil Shah from Haitong Securities. Please go ahead.
Thank you, ma'am, for the follow-up. I'm not sure whether it is the right time to discuss on that, but just wanted the thoughts on the train privatization program. Last quarter we had said that the process is getting delayed. So one, an update on the same. And is there any update on our plan for JV or leasing out option.
See, the date of commission of RSP has been extended from 30th June to 23rd July. First is this. Secondly, IRCTC had was very much in the race. I told you that we would be I had told earlier in the earlier conferences also that IRCTC has been qualified for almost 11 clusters except for the Bangalore cluster, 10 clusters because Hyderabad Bi did not apply. Our stand remains the same.
We are in process of getting our partners. There's Slight change in our strategy because now we are looking for a strategic partner who can go ahead with us for more than other Train for all kind of all such kind of operations happening in the future. So expression of interest for that is already out And the date for closure of that RFP is going to be around is around 2nd July. It's 2nd July we are closing that. And we are also in talk with many rolling stock providers and other financial houses so that we can find a partner who can spend some money.
As you can see that there is some change in our segmental revenue also. So we have to find out a partner first to go ahead in this tender So that we can participate in more clusters.
Sure. Ma'am, did I understand it correct that You are looking at a partner who can participate in this link of privatization and also on other operations like a data screen that you're talking about.
It's got a
strategic tie up. It's got a strategic tie up where we are looking a partnership for a person for who can spend Equity in the company. So we have reserves, but we can't send it all. Otherwise, our development will come to a halt. So we need to have a person who I'm rearing for.
We shall be proving a CPV or LAB subsequently. Right now, CPV is on the card.
Sure, sure. Ma'am, just last thing was on the bus ticketing business. Has that seen a pickup to be top top or we'll have to wait for One thing to normalize and our volume also to offments which might happen during the year.
See, if you see the Previous year 2021, the number of tickets booked had reduced to half. In April, it further reduced for few days because many trains were canceled. May picked up a bit. But in June, there has been a very good increase. On few days, we were booking around close to 10 next tickets in a day.
So I can say the trend is very positive. It is more trends being introduced and the 2 year class being there. The Internet booking in June has been Much better than the previous year. Of course, previous year we had COVID and the previous June also.
My question was more on the bus ticketing business.
Bus ticketing. Bus ticketing.
Bus ticketing. Sorry, I'm sorry. I consider that as railway ticketing. Bus ticketing has started picking up. Initially, there were hiccups, I'd say, lockdown happening Because this is being driven by many state governments.
It has started picking up. But the pace is very slow. I must say, this is very slow. We are now planning on marketing along with our partners.
Sure. Thank you so much.
Thank you. The next question is from the line of Richard D'Souza from State Bank of India Mutual Fund. Please go ahead.
Good morning, ma'am. Just a couple of questions from my side. I just want to know that Currently you said that about 800 trains are operational somewhere in June. So pre COVID, what are the peak number of trains operational?
See, the I said the 8 hundred number of our trains were ordered that they will be operating. If I give you the correct figure, in the month of March, we had a total 4.30 contracts for the train For the catering. And now we have around 4 50 train contracts available And 100 such contracts are in the pipeline. So these are the catering contracts. But our revenue from Train is not only the catering revenue, it is the ticketing revenue also.
So where the trains do not have pantry cars also, So if you multiply it by 2, so you can say around 950 or 1000 that might would be running. I'll give you the exact number before I close.
Yes, yes. I just wanted the number I can give
you. The exact number.
Yes, ma'am. I just wanted a number of trains which are operational for which ticketing is being done.
Okay. I'll give you the number. Let's say In COVID peak
and currently now in March June. So that was one number if you could share. And the second thing is when we move the reservations basically from unreserved to reserves that's 2 category. So how many coaches were added or how much incremental tickets could be on offer?
I will give you the courses that were added 1 of the 2S class, right? So in the 2S class, Our booking is amounting to be in the year 2021, the percentage booking for this particular class has been to the tune of 36% Which is slightly lesser than people class, which is the highest, around 40%. So you can say the 2nd class is now beating and tracking with the people class also. So the increment in the everything has been basically due to this and the number of clients. Okay.
Thank you, ma'am. I'll come back later and I would appreciate if you could share the number for the train.
Just wait for a while. I'll get you.
Yes, ma'am. Thank you.
Thank you. The next question is from the line of Varun Goenka from Nippon India Asset Management Company. Please go ahead.
Yes. Good morning, ma'am, and thank you for covering it so well. So my question was around ticketing. We were doing around 30, 30, 2 for all tickets before pandemic hit us FY 'twenty, I believe. If you could give a sense of What is the kind of ticketing opportunity we have for next 3, 4 years because there is a large non PRS segment, a lot of unreserved category.
So where this 30, 32 crore tickets become over the few years when even normalization happens and government gives you more ticketing areas, opportunity related to managing the whole ticketing part.
Sorry to interrupt, Mr. Goenka. So there is a slight disturbance coming from your line. I request you to meet your line while the management answers your question.
Sure. Well, I would like to explain first that it is not only that the reserve ticketing that we are doing, we are The same in the mail in the
mail in the mail in the mail in the mail in the mail in the mail in the
mail in the mail in the segment are being provided by IRCTC only. But it is kind of a social service. We are not getting any revenue. So it may not be of much importance to you. But whether we have been trying to get Some share in the non reserve segment also in the form of a convenience fee.
But the amount of a ticket value is very, very low. So in order to promote the digital payment, Ministry of traders has taken a call that these charges will not be there. It is only the bank charges that bank might be charging at their end. And that many Delhi Bank may not be charging because the transactions happening on these tickets are very low. So as of now, what I foresee that this 2 is Getting the percentage of the 36% will be the determining factor in the years to come.
So in the next 2 years, the 46% figure will vary up to 40, May go up to 40. That is my personal thinking. And the people class also will go up because you would have seen that there is increase in the Total traffic, earlier we were booking around 72% of the Indian Railways ticket. This year we have booked around 80% of the Railways ticket. These are things.
So this 8% increase in the overall ticketing, don't go by the number overall percentage, the number of persons booked if we see that, So we see some light over there. But if we our efforts in getting some share in the armed reserve segment Also, Sachin, we will be a double gainer later. So this we have been trying.
Sure, ma'am. Thank you. And On the payment gateway side, the efforts that we were making,
if you could help us with the progress that side so that
eventually All payments go to Ipay itself and we have to share less with the bank.
It will not be in the interest of Free and being selfish on the part of IRCTC, if I put IC. Firstly, it's not that IC will not be under the load. Why we have such a multiple solution? We take money from many of them. Some different charities we share with them.
Of course, our share in the IPAY is more as compared to the other cities. There's no doubt about it. But we have to see that the passenger is at ease and we should not get greedy too. Gradually, we are proliferating, but Gradually, we are increasing the lead and the forum, the place, etcetera, we are changing. And end of the day, we are a government company with 7% share of the government where we have to ensure level playing for all our partners.
If I have Ipay, I have CTCG also. Sorry, I have ITC ITG also.
I have Razorpay also with me.
I have to be fair to them. They are also giving me money. So I have to take everyone along in this digital journey of India.
Right. Thank you. Just final point, we'll be eventually looking to integrate all air ticketing, bus ticketing, railway Already there,
already there. There I can because these are my businesses, there we have given
All right. Thank you.
Prasunjis, are there it's not that we are not giving preferences to ICA. We are in fact we are going forward also in getting some licenses from RBI so that we can take this iPay for total government agencies for pay as a payment mode. Efforts are on, maybe next year you'll hear that.
Thank you. The next question is from the line of Manan from ICLIA Securities. Please go ahead.
Hello, ma'am. My question is towards the capital expenditure across your IT infrastructure, across where you need it And the private, those that we are planning to bid as and when the bidding gets started. And if any other areas are What are your what will be capitalized?
This year, we have We intend to spend 100 crores but because of the restriction imposed and the second wave starting in February itself And we got reduced our sales to 73 crores, But we have ordered and this year we are planning to spend again around INR 90 crores to INR 100 crores in improving our infrastructure in internet everything. Because the tender we could not do, the previous year we would be doing this this year.
And ma'am, for Railene and other endeavors?
Railene, we have 14 earlier we had 14 of Glass plant operation. Now we have Oona plant has also been made operational. Gotthawal is going to be completed very soon. And Vijayawada is like I think Vijayawada, NTPC with Himadri and Buthaval, healthy commission in this financial year. And the other 2 plants in Kota and Bhumeshwar will come up in the year 2022 2023.
This will be INR20, 25 crores kind of number or much less?
Less they are lesser because they are the 72 plant is will be 70 I think there we have given them capital support of 8 crores each month. So you can say 8 months. We have already given the support because the machinery has been installed.
And we know it's 25.
21, 22. 20 2, 23, yes. I think only 16 crores maybe this is a problem.
Okay. And ma'am, for the private routes, as in when they come in, we were planning to have the rates on our own books because it was a better IRR given 10 year depreciation. How does that work and what are we planning there?
It certainly works very nicely provided we've been a tender. And as of now, for running pager, We were given certain dispensation and certain ad holding was done by Indian Railways. If we go for a private rate now, So one thing is getting them 1st is getting them approved from RDS on other railway operation agencies will be a challenge for
us.
1, Secondly, CRS sanction will also be a challenge for us. Thirdly, if I use those rates and railway loses revenue, then the dispensation Given to me will be withdrawn. I think you I have been able to make myself very clear, sir, But we are as of now, we are using the coaching stock of Indian Railways. It will be a real challenge for IRCTC to run with the private stock as of now because if but if we win a private train tender, then we'll have to get The tensions separate tensions for those trains, then there shall not be a problem. That will be a different story.
This is going to be a different story. Yes,
your question is
well taken that running by with the private stock may be cheaper option as compared to this.
So, ma'am, as of now, we have no such plans and nothing budgeted for that endeavor, right?
Ride by train, what we have to spend this year is first of all winning the tender we have to plan the BGS etcetera, but we have already provisioned around 60 crores, etcetera, we have reserves. Then in case we spend, then we are also looking for equity participation from our partner. 60%, 50%, he would be doing that we would be doing. But you can say we have made an internal provision of around INR 400 And phase wise, year by year, in any case, if we win tender, say, by September or so or October or 2 year time period is still there to start the operation. So the planning will be done by setting the best rate Because STG will be there, they will be tendering it out, and the best set of the rolling stock provider will be taken, then the provision will be made in the next financial year.
Thank you
so much, ma'am. My last question, who will be these typical partners that we would have?
I cannot disclose as of now,
Okay, ma'am. Thank you so much.
Thank
you. The next question is from the line of Mayank Bhavla from Dalaland Brochure.
Thank you for taking my question. Congratulations on a good set of numbers, ma'am. Ma'am, you have given us the number for FY even in non convenience, could you give the same for the quarter, the non convenience income and same number of ticket books for the quarter?
Unfortunately, for that particular quarter, I'm not having the number readily available, but can be made available. Let me see. Okay. Convenience fee was around KRW 150, quarter 4. Okay.
So,
just wait for a bite.
Yeah. What is your name?
I'm sorry, I don't have these pages readily available with me. You give me some time, I'll get you.
Sure, ma'am. And just one more
if I could squeeze in the rail near capacity as of date?
Really, technically, earlier, with 14 plants, we had around 14.08 lakhs per day. With the new plant coming up this financial year, 4 So it
will be around 16 lakhs
per day. But the demand if the COVID continues and the demand will be less, So the production level will be maybe not be there. The capacity utilization of the plant may not be on the top notch. The COVID is actually affecting our business, catering and you know really with an extended catering.
Right. Okay, ma'am.
Thanks. I'll just wait for the number of tickets whenever in the Q4, whenever you get the number, ma'am.
You can note it down, sir. Yes. So in the month of January, we had around 281. In February, 298 lakhs and in March, it is 319. So you can now combine 3 to 5, 7, around 8, 9 something.
Sure, ma'am. I'll do the reverse calculation. Thank you.
Thank you, ma'am.
Thank you
and good luck for the next year.
Thank you.
The next question is from the line of Nikit Shah from Motilal Oswal Mutual Fund. Please go
ahead. Yes. Thanks for
the opportunity. Ma'am, just one question. Wanted to understand what will be the peak revenues given the fact that we go back to pre COVID levels and adding the new trends
which will also come on
board, if you just take that into consideration plus the 2S benefit. What can be the peak revenues that we can generate? Because it's very difficult to buy second, buy second a COVID period because the trains will there are multiple trains starting up at a higher then it kind of shuts off and again starts off. So, it's very difficult to buy and buy and buy. So, will it be possible for you
to give us some sense of what can be
the peak revenues and once you Assuming everything goes back to normal.
Assuming everything goes to normal, we'll not be that hope everything goes to normal fast. Still that we personally feel because we are in the hospitality sector, we are the worst respected. And Tourism account may not happen because still the visa restrictions are there.
I'm just trying to understand
on the transactional ticket part of it, ma'am.
Only the ticketing part you said?
Yes.
Yes. Ticketing will grow. The way it is growing.
No, what is the peak revenues for that line?
What is the recent peak? How many digit of peak tickets?
Peak ticket volume. We have already achieved 80%.
No, no, no. Ma'am, my question was assuming all the trains go back to full utilization, the way it was earlier in pre COVID level, What can be the peak revenue or peak ticket sales, whichever number you want to give it? Because it also it will include 2S, right?
Last year, our total revenue from Internet Its internet editing segment was around INR 619 crores. Right. Out of which, 58% was from the Convenience fee. Oh, that was around INR349 crores. So you can say if we go back to previous volume And that we would be around we would be earning around INR360 to INR400 from the convenience fees.
I mean, start
year is starting of
And this was sorry, sorry, sorry. You can say 349 was there because we started in the September I'm saying so you can take out the average for the month and then multiply by that year.
Got it. Got it. Okay, ma'am. I'll come back in. Thank you.
Thank you. The next question is from the line of Dhruva Mukherjee from Malabar Investments.
So has the share of bookings coming from our agency partners 1 up over time. And how high do you see it going?
Well, if I share the exact figure with you, The bookings with our B2C partners are really doing very, very well. So I can say that Let me our B2C partner bookings earlier were around 14%. Oh, they are around 60% to 17% bookings are happening to our B2C partner as a normal user. There is a revenue, you know we have additional revenue also.
Exactly. And do we mind it going as high as possible? I mean, how do you feel about transforming from a B2C company to B2B?
Why should I stop? Tell me one reason. If I'm getting those, why should I stop them?
No, no reason, stop. But do we want to remain the first a place that a customer goes
through Actually, you have to be like, we have a various kind of booking pattern. We have a G2G partner. We have a e governance team also. We have G2G partners also. Then we have a normal user booking also.
So we are providing multiple sessions. So it's going to be survival of the potential. So, what who said that he is going to present the booking in the fastest manner and the nicest manner and give the facility to the customer, So he will drive away the business. And of course, most of the time, the hike is going to be mild. So I'm going to be benefited by More of B2B partners as compared to B2B, but still B2B is a gainer for me because still I get the convenience fee.
Yes. And currently, what share of bookings
would be coming from offline agents?
Offline agent now is going very less. It is around these are generally, I think, offline agent we have only in the Internet services team. They are around to the tune of 3% only. Then you have government G2G business. There you have many facilitation centers of the Big government.
There the booking is not even 1 person. Then you have in the most of the bookings are happening online only. Even in the government sector also, where the forces that we have tied up, they are online. Offline, we don't do. But railways that do is around 20%.
Still they are doing 20% because 80% is online.
Okay. Okay. So We are getting agent annualized citizen booking as well. Yes.
So from 72% the journey has been up to 80%. Maybe next time when we talk, We have traveled further.
Yes, yes. Okay, ma'am. Thanks a lot.
Thank you. The next question is from the line of Ashish Agarwal from Principal India. Please go ahead.
Yes, my questions have been answered. Thanks a lot.
Can I answer Sir, the question is that how many trains are running as of now on Indian Railways? So it is around 1500 trains are running. I think hello. Many of you had asked I think Urmin had asked and after Urmin from Golub Capital had asked someone. Someone had asked how many trains are running from the Indian railways set up where the bookings are happening.
There are around 1500 mail access trains. And suburban services are also there, secondary things are also there, but they are in the Amazon segment that is happening mainly in the Western region.
Thank you. Due to the time constraint, this was the last question for today. I would now like to hand the conference over to IR CTC Management for closing comments.
Thank you very much, all of you. It has seen a really brainstorming session. The year has been very difficult. When initially we were not doing very well in the Q1 because IRCTC had had shown loss in the Q1, but gradually we improved in the Q2. Then Q3 we improved further.
And in the last quarter we improved further. And put together, I think we have been able to bestow your confidence of our investors and declare the dividend of around 50%, INR 5 at the face value of INR 10. And this after the pandemic also, rather fundamentally still continuing. As I've been mentioning every time that hospitality sector has been worst affected and the tourism is going to take some time to take out, especially the aim of tourism because many of the air traffic restrictions are still not open. So our few traffic will take some time to cope up with these changing environments.
Secondly, the catering pattern is also changing. The segment of shopping pattern is also changing. This pandemic has affected each and every corner of our eating habits also. The market though will decide who live in this market for long, But we hope that these things will change. And by saying so, I wish you all the best, everyone, for the coming years And stay safe, stay healthy, may the COVID not take over you and you should all stay healthy and healthy.
Thank you very much, Inyush. Thank you very much once again. A very good afternoon.